ACCTG-5 Allowances 80,000

Problem 15-12 Decrease in Trade Payables (400,000)

Dec. 31 Jan. 1 Gross Sales P 3,080,000
Assets 6,880,000 6,000,000 Allowances (80,000)
Liabilities 1,600,000 2,120,000 Net Purchases P 3,000,000
Equity 5,280,000 3,880,000 Inventory, beg 1,600,000
Inventory, end (960,000)
Equity, end. P 5,280,000 COGS P 3,640,000
Withdrawals 400,000
Investments (600,000) Equipment, beg P 1,200,000
Equity, beg. (3,880,000) Purchase 400,000
Net Income P 1,200,000 Sold (100,000)
Equipment, end (1,120,000)
Cash Sales P 800,000 Depreciation P 380,000
Collections 3,960,000
Discounts 100,000 Proceeds from sale P 120,000
Returns 320,000 Carrying Amount (100,000)
Writeoff 120,000 Gain on Sale P 20,000
Increase in
Trade Receivables 1,200,000 Accrued Expense, beg P 40,000
Gross Sales P 6,500,000 Interest Expense 160,000
Discounts (100,000) Accrued Expense, end (80,000)
Returns (320,000) Total Interest P 120,000
Net Sales P 6,080,000
Unearned Income, beg P 120,000
Rent Income 80,000
Unearned Income, end (40,000)
Total Rent Income P 160,000
Cash Purchases P 600,000 Lancer Company
Payments 2,800,000 Income Statement
 Year Ended December 31, 2019
Net Sales P 6,080,000
COGS 3,640,000
Gross Profit P 2,440,000
Other Income
Gain on Sale 20,000
Rent Income 160,000 180,000
Total Income P 2,620,000
Expenses 800,000
Depreciation 380,000
Doubtful
Accounts 120,000
Interest 120,000 1,420,000
Net Income P 1,200,000

Problem 15-13
Dec. 31 Jan. 1
Assets 4,810,000 4,390,000 Loss on discounting P (10,000)
Liabilities 1,410,000 1,890,000
Equity 3,400,000 2,500,000 Equipment, beg P 1,000,000
Purchase 280,000
Increase in Equity P 900,000 Equipment, end (1,120,000)
Dividends 400,000 Depreciation P 80,000
Increase in Share Capital (800,000)
Net Income P 500,000 Expense P 790,000
Prepaid Expense, beg 120,000
Collections P 2,950,000 Accrued Expense, end 50,000
Discounted Note 200,000 Prepaid Expense, end (100,000)
Returns 320,000 Accrued Expense, beg (40,000)
Increase in Total Expense P 820,000
Trade Receivables 220,000
Sales P 3,370,000 Interest:
P 300,000*12% (10/12) = P 30,000
Payments P 2,100,000 Corolla Company
Decrease in Trade Payables (320,000) Income Statement
Purchases P 1,780,000 Year Ended December 31, 2019
Inventory, beg 1,600,000 Sales P 3,370,000
Inventory, end (1,500,000) COGS 1,880,000
COGS P 1,880,000 Gross Profit P 1,490,000
Expenses 820,000
Proceeds from sale P 250,000 Depreciation 80,000
Investment, end 100,000 Interest 30,000
Investment, beg (400,000) Loss on Sale 50,000
Loss on Sale P (50,000) Loss on discounting 10,000 990,000
Net Income P 500,000
Proceeds P 190,000 Problem 15-14
Face Value note 200,000 Jan. 1
Assets 1,590,000 Supplies, end (20,000)
Liabilities 460,000 Total Supplies P 95,000
Equity 1,130,000
Allowance for
Cash P 200,000 Doubtful Accounts, end P 50,000
Deposits 3,930,000 Write off 30,000
Disbursements (3,360,00) Allowance for
Service Charge (10,000) Doubtful Accounts, beg (20,000)
Cash P 760,000 Doubtful Accounts P 60,000

Receipts P 3,930,000 Accounts Payable, beg P 250,000

Writeoff 30,000 Purchase on account 2,250,000
Increase in Receivables 30,000 Returns (70,000)
Sales P 3,990,000 Payments (2,200,000)
Accounts Payable, end P 260,000
Payments P 2,280,000
Returns (80,000)
Decrease in inventory 50,000
COGS P 2,260,000
Depreciation:
P 350,000*10% = P 35,0000

Accrued Salaries, end P 15,000

Salaries Expense 400,000
Accrued Salaries, beg (10,000)
Total Salaries P 405,000

Supplies, beg P 40,000 Camry Company

Supplies Expense 75,000 Income Statement
 Year Ended December 31, 2019 As of December 31, 2019
Sales P 3,990,000 ASSETS
COGS 2,260,000 Current Assets
Gross Profit P 1,730,000 Cash P 760,000
Salaries 405,000 Account Receivable – net 400,000
Supplies 95,000 Inventory 650,000
Tax 45,000 Supplies 20,000
Depreciation 35,000 Total Current Assets P 1,830,000
Doubtful Accounts 60,000 Noncurrent Assets
Bank Charge 10,000 Equipment – net 215,000
Other Expense 245,000 Total assets P 2,045,000
Miscellaneous 35,000 930,000 LIABILITIES AND OWNER’S EQUITY
Net Income P 800,000 Current Liabilities
Accounts Payable P 260,000
Notes Payable 80,000
Accrued Expense 15,000
Total Liabilities 355,000
Equity
Owner’s Capital, beg 1,130,000
Net Income 800,000
Withdrawals (240,000) 1,690,000
Total Liabilities and
Owner’s Equity P 2,045,000

Camry Company Problem 15-15

Statement of Financial Position Cash in Bank, unadj P 250,000
Outstanding Check (50,000) Building, 4,500,000 /15 = P 300,000
Equipment 400,000 / 5 = 80,000
Correct Balance P 200,000
Depreciation P 380,000
Total Deposits 3,500,000
Total Checks drawn P 3,300,000
Complex Company
Income Statement
Receipts P 3,500,000
Year Ended December 31, 2019
Cash Investment (500,000)
Sales P 4,000,000
Bank Proceeds (500,000)
COGS 2,300,000
Deposit from Sales P 2,500,000
Gross Profit P 1,700,000
Expenses Utilities 100,000
Disbursements P 3,300,000
Salaries 100,000
Bank Payment (125,000)
Supplies 175,000
Interest (25,000)
Tax 25,000
Installments (445,000)
Depreciation 380,000
Checks paid-Creditors P 2,705,000
Doubtful Accounts 50,000
Interest 70,000 900,000
Cash on Hand, end P 125,000
Net Income P 800,000
Advances (75,000)
Disbursements 550,000
Cash Collections P 600,000
Deposit from Sales 2,500,000
Accounts Receivable 900,000
Sales P 4,000,000

Checks paid-Creditors P 2,705,000

Accounts Payable 350,000
Purchases P 3,055,000
Inventory, end (755,000)
COGS P 2,300,000
 Complex Company
Statement of Financial Position
As of December 31, 2019
ASSETS
Current Assets
Cash P 325,000
Account Receivable – net 850,000
Inventory 755,000
Total Current Assets P 1,930,000
Noncurrent Assets
Property Plant & Equipment 6,020,000
Total assets P 7,950,000
LIABILITIES AND SHAREHOLDERS’
EQUITY
Current Liabilities
Accounts Payable 350,000
Notes Payable 375,000
Advances to Customers 75,000
Total Liabilities 800,000
Equity
Share Capital 6,500,000
Retained Earnings
(800,000 – 150,0000) 650,000
Total Liabilities and
Owner’s Equity P 7,950,000